Europe Factory Automation and Industrial Controls Market Size

Europe Factory Automation & Industrial Controls Market Analysis

The Europe factory automation and industrial controls market is expected to register a CAGR of 8.9% during the forecast period (2021 - 2026). Smart factory initiatives have helped manufacturers to overcome COVID-19 challenges and address issues such as workforce reductions, drops in sales for some specific products, social distancing, and extreme pressure to cut operational costs since most enterprises operating in the end-user industries (majorly manufacturing, automotive) had shuttered down their production sites due to lockdown restrictions.

• With a rapid increase in competition and evolving end-user requirements, manufacturing units in the region are being forced to adopt newer technological innovations and digital transformation solutions to make their business process as efficient as possible. For instance, field devices, like motors and sensors, among others, offer opportunities to the auto industry to react faster to market requirements, reduce manufacturing downtimes, and enhance the efficiency of supply chains, and expand productivity.
• The region is also adopting industrial automation in various industries, with major firms launching industrial automation products in the market. For instance, Schneider Electric, a player in the digital transformation of energy management and automation, announced the ClimaSys smart ventilation system, which is an intelligent solution for filtering and managing the airflow for multiple control panels or electrical distribution cabinets in new or renovated applications.
• According to OECD, Germany spends 2.88% of its GDP into manufacturing innovation, well ahead of the OECD average of 2.4%. The German automotive industry has extended its worldwide position in automotive production, significantly, over the past few years. Moreover, sustainability in the manufacturing sector is expected to be a major driver for the market studied.
• Furthermore, various measures are being taken to boost power transmission capacity, such as smart grid, in the energy landscape The measures by the four national grid operators, to boost power transmission capacity, add up to a cost of EUR 50 billion. This is likely to escalate the usage of industrial control systems during the forecast period.
• The Russian government is showing interest in import substitution of food production. The ban on imports of food could lead to the development and expansion of the country's food industry, further demanding investment in modern technology for processing and packaging. Also, the government is focused on creating its pharmaceutical industry by planning 'Pharma 2020 Strategy'. Its goal is to reduce the reliance on the Russian economy on imported pharmaceuticals, which is expected to drive investments in the market.